Fraud victims of an investment scheme have urged China’s Ministry of Foreign Affairs to engage in discussions with the UK government to reclaim 61,000 Bitcoin, which were confiscated during a money laundering probe and valued at $4.3 billion at the time of reporting.
These Bitcoins originated from a $6.2 billion wealth management scam that occurred from 2014 to 2017, orchestrated by the Chinese company Tianjin Lantian Gerui Electronic Technology, defrauding over 128,000 individuals.
The Masterminds Behind The Scheme Involving The Fraud Victims
The UK government was alerted to suspicious activities when former restaurant employee Jian Wen tried to buy a $30 million property using Bitcoin, but the deal fell through because Wen could not account for the origins of the funds.
This led to an investigation that resulted in a raid on a property leased by Wen, who was acting as a nominal figurehead, and her employer Zhimin Qian, who was believed to be the orchestrator behind the scheme. During the raid, authorities confiscated 61,000 Bitcoins, valued at $1.7 billion at that time.
Faced with the incriminating evidence, Wen initially insisted the Bitcoins were mined. Later, she altered her explanation, claiming the Bitcoins were a gift from Qian, who escaped abroad following the raid.
Jian Wen was eventually tried for aiding Qian in laundering the cryptocurrency into cash, jewelry, and real estate. Despite her denials, Southwark Crown Court found her guilty on three counts of money laundering on March 20th.
Fraud Victims Now Want It All Back
Following the conviction of the fraud perpetrators, a representative group of the fraud victims is making efforts to recover the Bitcoin, now valued at $4.3 billion, that was bought with their funds.
This group has formally approached China’s Ministry of Foreign Affairs through a letter, pressing for diplomatic talks with the UK to retrieve the substantial amount of Bitcoin that was confiscated. They have also reached out to China’s Ministry of Public Security, supported by nearly 2,500 victim signatures, to present their case to both Chinese ministries.
Following a five-year operation, Met detectives secured justice as part of the largest Bitcoin seizure in UK history.
Read press release here: https://t.co/ahHKDUbJH5 pic.twitter.com/bhwcdul2o3
— Metropolitan Police (@metpoliceuk) March 22, 2024
In their letter, the fraud victims advocate for a cooperative effort between the Chinese government and UK judicial authorities to present proof affirming their rightful ownership of the Bitcoin. They expressed their clear refusal to accept any scenario where the Bitcoin remains in UK custody without being returned to them.
As of now, the UK government has not responded regarding its plans for the seized Bitcoin, and the individual named Qian remains free.
Should the UK authorities conclude that no other claims to the Bitcoin are valid, the proceeds are typically allocated between the police and the Home Office.
Compensations Were Distributed To A Few Sufferers
Despite enduring severe financial hardships that led to family disruptions, debts, and inability to afford medical care, the fraud victims have received some relief.
Four victims disclosed that since last May, those registered with Chinese police have obtained two compensations from a task force led by authorities in Tianjin, recovering 8% and 5% of their invested funds from assets seized from Lantian Gerui and its ex-employees.
Moreover, the Industrial and Commercial Bank of China, the nation’s leading bank, has pledged support in facilitating the return process and reported that 207,000 individuals had invested in the scam.
